Ideas Into Action

1. Ideas Into Action VPF Community Forum January 20, 2010

2. Agenda From Recommendation to Implementation Israel Ruiz, VP for Finance, Member of Task Force Coordinating Team Simplifying Our Processes: Accounts Payable Gillian Emmons, Controller and Director of Accounting Services Evolving Our Services: Sourcing, Travel & Procurement Services Leo McInerney, Director, Sourcing, Travel and Procurement Services Working to Serve You Better: HR/Payroll Gerry O’Toole, Director, HR/Payroll Transforming the Experience: Timeline for Implementation Robin Elices, Senior Director, Office of the Vice President for Finance

3. We want to hear your thoughts

4. Israel Ruiz, VP for Finance, Member of Task Force Coordinating Team From Recommendation to Implementation

5. Evolution Through Collaboration Collaboration is a process defined by the mutual learning between two or more people who are working together toward a common goal.

6. What We Heard from the Task Force

7. Guideposts for Action What we heard from Administrative Council • Do what is best for the Institute – focus on the greater good • Need for norms and an established set of criteria for evaluating recommendations • Avoid cost shifting • Weigh impact on MIT mission

8. Ideas Into Action Transforming the experience for the 21st Century • How we are responding to recommendations: • Integrate services to create seamless experiences • Make our services more responsive to community needs • Provide options to eliminate unnecessary work • Implement processes that are more modern and simpler • Evolve procurement to strategic sourcing • Advance Digital MIT

9. Gillian Emmons, Controller and Director of Accounting Services Simplifying Our Processes:Accounts Payable

10. Accounts Payable Today

11. Taking Work Out of the System EDI – Online Catalogue • 33% of current volume • Online ordering, online payment, presumed receipt • No paper, requires minimal effort of DLCs and VPF Goods Receipt • 4% of current volume • Use regular purchase order • Minimal paper flow, reduced effort for DLCs and VPF • Best for areas with central receiving • Used in Facilities; recently started in Plasma Science & Fusion Center

12. Areas Ripe for Modernization Requests for Payment (RFP) • 16% of current volume • Manual, paper-based • Requires significant effort of DLCs and VPF Other Purchase Orders • 47% of current volume • Low presumed receipt level -- $500 • All other invoice approval -- manual, paper based • All Blanket PO invoices need extra handling • Requires significant effort of DLCs and VPF

13. Opportunities for Change • Online RFP via SAP – Available Summer 2010 • Increase presumed receipt level • Based on FY08 volume, changing from $500 to $1,000 would have reduced processing time and effort for 8,000 invoices. • Increase use of MIT Procurement Card • Increase purchasing options through EDI • Implement e-invoicing through bank

14. How would you feel about us raising the presumed receipt level? With what level would you be comfortable? $1,000, $2,000, $3,000? We want to hear your thoughts • Consider purchases that you make for which you could use the MIT Procurement Card but do not. Why not? • Would Goods Receipt be an option for your area?

15. Leo McInerney, Director, Sourcing, Travel and Procurement Services Evolving Our Services: Sourcing, Travel and Procurement Services

16. Evolving Our Services

17. Opportunity for Savings Task Force and Targeted Groups $273M Balance $389M Additional Opportunity $455M Sourcing, Travel and Procurement Services $1.12 Billion Total Expenses – 2009

18. Supplier Rationalization $ $ 11

19. Category Teams • Contingent Workforce • Travel • Computer Peripherals • Lab Supplies • Print/Duplication • Office Supplies • Furniture • Facilities • Gases • Catering

20. Your Engagement Three things we need from you • Advocate • Collaborate • Embrace 65

21. MIT Travel Modernization Project • Planning: Online booking tool (integrated with expense reporting system) • Payment: Travel credit cards (credit card expenses feed to Concur) • Expense reporting: Automated (electronic workflow for approvals) • Reimbursement: Out-of-pocket expenses via direct deposit

22. What do we need to be mindful of as we proceed? • How can we measure the effectiveness of our service delivery system? Would you be willing to complete surveys? Phone call check-ins from Sourcing staff? We want to hear your thoughts • Would you be interested in serving on a category team?

23. Gerry O’Toole, Director, HR/Payroll Working to Serve You Better: HR/Payroll

24. Serving Your Needs • Working toward better … • Timeliness • Accuracy • Customer experience • Integrated services with HR • Digital tools and processes

25. Joint Customer Service Approach • Integrated tracking and response to service requests by HR and HR/Payroll • Eliminate bouncing between teams • Answer questions and provide service faster • Present seamless interface for obtaining service • Greater accuracy

26. Managing Complex Issues Tier 2 Team Deliver high quality customer service to customers who request assistance in processing complex transactions or reach out for guidance on HR/Payroll policy and procedures • Composition • HR, HRO’s • HR/Payroll team • Process • Daily/weekly meetings to review/triage cross-practice customer requests • Benefits • One-stop shopping • Rapid assessment of the request • Coordinated/joint solutions • Timely delivery

27. What the Future Holds in Store Coming soon • Appointment process redesign • ePaystubs • Electronic W2s Future • Undergraduate appointment feed

28. How do you feel about what I have outlined? • Do you feel that our service delivery is moving in the right direction? We want to hear your thoughts • What payroll-related process challenges do you encounter? • How can we support you better?

29. Robin Elices, Senior Director, Office of the Vice President for Finance Transforming the Experience: Timeline for Implementation

30. Meeting Your Needs in the 21st Century As we work to gain efficiencies we are also working to become more effective. Create easy processes and systems Complete activities timely and accurately Coordinate efforts to solve problems Incorporate your feedback

31. Collaboration in Action User Advisory Group A Model for Modernization Pilot Pilot Diverse Steering Group Learn from Project, Refine Model User-based Development Process Phased Launch User Input Apply to Other Projects Cross-departmental Sponsors

32. Timeline for Delivery 2010 January April July September December Travel Modernization Project Pilot March Phased rollout December SAPWeb Request for Payment Available to community in July Pilot: May, June Appointment Process Redesign In Pilot Available to community in September

33. Work in Progress • Electronic Paystubs & W2s • Direct Deposit – Reimbursements • WebGradAid Phase II • Undergraduate Appointment Feed to SAP • Increased Levels for Presumed Receipt • Electronic Goods Receipt • eInvoicing • Sourcing Category Teams Recently Completed On the Horizon • SRS Vacation Tracker • Summer Session Spreadsheet Upload • WebGradAid Feed to SAP, Phase I • Late Salary Distribution Change

34. How do you feel about what you heard today? We want to hear your thoughts • What should we remember as we continue to streamline and evolve our services?

35. Progress Through Evolution Evolution is motion incomplete in itself, but combining with coordinated motions to produce a single action.

36. Thank You! Slides are available on VPF web site http://vpf.mit.edu Please feel free to contact today’s speakers with questions or comments HR/Payroll: Gerry O’Toole, gotoole@mit.eduAccounting: Gillian Emmons, gemmons@mit.eduSourcing: Leo McInerney, Sourcing, leomci@mit.eduTimeline for Implementation: Robin Elices, VPF, relices@mit.eduGeneral Issues: Scott Rolph, srolph@mit.edu Upcoming events AO/FO Meeting, April 1, 2010